How much does it cost to buy a property in Italy?
If you are thinking of buying a property in Italy – well we are very jealous! In addition to the purchase price of your perfect property in Italy however, you will also need to ensure that your budget covers the additional costs of the purchase.
Helpfully some guidance regarding these costs is set out below for you…
When you buy a property in Italy the transaction must be completed through a Notary (Notaio) and you will have to pay the Notary for this. The Notary’s fee is calculated as a percentage of the price of the property. Generally, the lower the sale price the higher the percentage but that percentage won’t exceed 2.5-3 per cent of the total cost of the property.
It is strongly recommended that you instruct an independent English–speaking Italian lawyer who is experienced in dealing with property purchases in Italy to advise you regarding your property purchase in Italy.
Legal fees are usually in the region of 1%-2% of the property purchase price (the lower the value of the property the higher the percentage usually).
This is 2% if the property will be your main residence. Those who are not resident in Italy will be charged a higher registration tax of 9%.
If you are buying a new build property you will be exempt from these taxes but will instead have to pay VAT, of 4% for main residence or 10% for non residents (this could be 22% for a “Luxury Home”).
Land Registry Taxes
These will be charged as a fixed sum of about € 200.
All of these taxes will need to be paid to the Notary who will then channel them to the correct departments within the government.
Estate Agent Fee
Italian estate agencies usually charge both buyers and sellers a commission. This can be as high as 3-5 per cent to each. (It can sometimes be worthwhile trying to negotiate on the fee!).
You may also have to factor in any additional costs for example for surveyors and architect fees. You may also have to pay to connection to the water, electricity or gas mains.
You should also check with the estate agent or your lawyer what they ongoing property ownership costs will be for your particular property (such as local council taxes etc). These will vary depending on the location, the type of property and its cadastral value.
For more information and tips about buying property in Italy safely and efficiently, download our guide to buying property in Italy. You can also call us on 01244 478 911 or email us at email@example.com.
The friendly team at Total Buying Abroad will be happy to provide you with any additional guidance that you may need and can recommend reputable professionals to assist you with your property purchase in Italy such as lawyers, mortgage advisors, currency exchange specialists and many more!
Article published: October 31, 2017